Cosmos is the solution to the “slow, expensive, unscalable and environmentally harmful” proof-of-work cryptocurrencies and aims to provide a more secure approach to blockchain-based services.
Furthermore, the data from CoinMarketCap shows that the Cosmos token (ATOM) rose by more than 21% in the past 24 hours with a 272.57% surge in trading volume, which is currently standing at $1.3 billion. Traders witnessed a 21.85% surge in the market cap, which rests at $7.3 billion.
The market rank of the token stands at 27. The daily candle started at $28.37, and the token rallied to a daily high of $33.6, following the daily low of $27.72. The current prices rest at $31.88.
Cosmos price analysis on the daily chart using technical indicators
Cosmos hosted its Cosmoverse Conference 2021 in Lisbon, where an upgrade for the network was announced. This upgrade is one of the reasons for the bullish surge experience by Cosmos.
On the other hand, the cryptocurrency has shown bullish signs in the past 24 hours, which follow the formation of a ‘bull flag.’ The prices rallied strongly above $40, which led to a bearish correction, leading to the formation of a bull flag.
The ‘bull flag’ formed hints at a target equal to the length of the flagpole. This puts the next target at nearly 160% away from the current levels, considering a rough breakout point at $28. On the whole, this is a bullish signal for the token on the daily chart.
The prices are trying to reclaim the 50-day Moving Average and are currently below this key level. Furthermore, the bulls have taken control, taking the ATOM prices from the lower region of the Bollinger Bands to the upper end. A breakout is possible if the current resistance is broken.
The token accumulation continues as the A/D line is bullish on the whole while the gradient is positive. Higher prices are possible since the token is being held by whales as well.
Moreover, the RSI levels continue to rise with a sharp gradient. This indicates a sharp rise in the trading volume of the token as the RSI line entered the bullish region, and higher prices are definitely possible.
Currently, the token is 27.51% from its ATH. Compared to our Cosmos price analysis from early October, the token is more than $10 low from those levels. However, the decentralized finance industry continues to break records, as recently, the DeFi industry achieved $205 million in TVL.